Any investors would pay particular attention to the profitability of a company before considering taking a position. Here we’ll take a quick look at shares of Evolent Health, Inc. (NYSE:EVH) and the company’s ability to generate profit. The firm currently has a Return on Equity -46.30% which is derived from comparing 12-months net income to shareholder equity. So even though the company is generating profits, where can the stock go from here? Sell-side analysts covering the shares are projecting a one year price target of $29.25 on the stock. When comparing this to a recent price of $18.95, the potential upside should be noted. Taking analyst recommendations into consideration results in a Buy/Sell consensus recommendation of 1.70. This is according to all of the analysts polled by First Call.
What makes a stock profitable? Let’s look at a few factors.
Rising EPS (Earnings Per Share)
Businesses must be able to have competitive advantages and must produce value to consumers in the form of desirable goods and services. When a business has a strong brand, they can afford to raise prices and also have a differentiated product that is more desirable compared to their competition. A business that is able to grow earnings per share can afford to pay a rising dividend. Evolent Health, Inc. (NYSE:EVH)’s trailing 12-months EPS is -3.42.
Evolent Health, Inc. (NYSE:EVH)’s performance this year to date is 28.04%. The stock has performed 19.18% over the last seven days, 16.26% over the last thirty, and -25.13% over the last three months. Over the last six months, Evolent Health, Inc.’s stock has been -18.60% and 73.69% for the year.
RSI and Recommendations
Evolent Health, Inc.’s RSI is 69.21. Based on the stock’s volatility for the week, which is a statistical measure of the dispersion of returns for a given stock and represents average daily high/low percentage range of 6.06% and month of 4.65%.
There are a number of sell-side analysts who have recently weighed in on the firm. As stated earlier, the consensus target price is $29.25 with a mean recommendation of 1.70 (1-5 scale).
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